Motor Vehicle Defects

Chris Welsh, Esq. welsh-law.com Compensation expert Kenneth Feinberg has so far determined that the now notorious GM ignition switch defect, which was found to shut off the airbag and power steering, is responsible for 56 deaths. The new total has been climbing since the Jan. 31st deadline to submit claims to the compensation fund, which was set up due to the sheer size of the GM issue. Feinberg directed other mass compensation funds for other great tragedies, including the September 11th fund and one for the BP oil spill. As part of the process, those who submitted their claim for …

Chris Welsh, Esq. www.welsh-law.com Later this month, there will be a hearing to decide whether federally-filed Takata Airbag cases should be consolidated for one district court and, if so, which in particular. Takata, a Japanese auto supplier, has struggled with airbag ruptures for nearly two decades (NY Times). The cause is believe to be an unstable compound that blows up in response to pressure or temperature changes. The explosion may be due to the fact that Takata is reportedly the only supplier to use ammonium nitrate, an explosive chemical, to inflate airbags rapidly. The faulty airbag has been linked to …

Christopher Nace, Esq. The government will fine Honda $70 million for its failure to report warranty and customer dissatisfaction claims and over 1,700 complaints that its vehicles caused deaths and injuries between 2003 and 2014. The automaker allegedly waited three years before disclosing safety problems and complaints to the National Highway Traffic Safety Administration (“NHTSA”). In response, the agency has imposed the $70 million fine, which is reportedly the highest Honda has ever faced, and notified the Justice Department. Congress limits fines to $35 million, but Honda will have to pay double because it was fined twice for separate issues–once for …

Chris Welsh, Esq. www.welsh-law.com The National Highway Traffic Safety Administration (“NHTSA”) demands that Honda pay $70 million for failing to report consumer warranty claims and over 1,700 claims of death and injury through the Early Warning Reporting system, “EWR.” Although Honda will pay, it has defended that failure to report was due to a data entry glitch. The automaker reportedly learned of the glitch from an NHTSA investigation in late 2011. Fast forward to three years later, Honda still had not corrected the error. While much of the blame right now is directed at Honda, others criticize that the issue …

Chris Welsh, Esq. welsh-law.com Los Angeles and San Francisco district attorneys have joined the growing group of cities, states, and countries to take issue with the popular ride-sharing app, Uber. Uber is a smartphone app that enables riders to find private drivers. Most notably, its generally faster and cheaper than call a cab. Offering such consumer convenience, the app’s popularity boomed and investors leaped. In June, Uber was valued around $17 billion. Today, it’s reached $40 billion…more than any tech start-up in the U.S., including DropBox and Airbnb. But behind the start-up’s mind-numbing success is a darker story. Uber’s juxtaposition …